What Is a Sales-Marketing Funnel—And Why It’s the Key to Successful Ads
Ever feel like your ads are getting clicks but not conversions—and you just can’t figure out why?
You’re not alone, and you’re definitely in the right place. There’s one key piece of knowledge that might be holding your strategy back: the sales-marketing funnel.
Understanding the funnel is the secret to knowing what’s actually happening when people see your ads—and how to guide them from just looking to buying. In this post, I’ll break down what the funnel is and how it can transform your ad campaigns into something that drives real results.
So, What is the Sales-Marketing Funnel?
Simply put, the sales-marketing funnel is the journey your ideal customer takes—from first discovering your brand to becoming a loyal, repeat buyer (and maybe even a raving fan).
You’ve probably heard the terms “sales funnel” and “marketing funnel” used interchangeably. But together, they form the full picture. Think of it like an actual kitchen funnel—wide at the top, narrowing down as people move closer to conversion.
The stages usually look like this:
Awareness (Attract)
Consideration (Inform)
Conversion (Convert)
Loyalty (Retain)
Advocacy (Engage)
Breaking Down Each Funnel Stage
AWARENESS
This is the start of the purchase journey—when someone first hears about your business, product, or offer. This is your chance to highlight what makes you different and worth their attention.
CONSIDERATION
Now they know who you are! It’s time to educate and build trust. Encourage minimal-effort actions like following your page, checking out your website, or signing up for your email list.
CONVERSION
They’re interested—but haven’t committed yet. This is your opportunity to nudge them toward action. Think special offers, standout features, limited-time promos—anything that helps seal the deal.
LOYALTY / ADVOCACY
They’ve bought in—literally! Now it’s about keeping them engaged, delivering a great experience, and turning happy customers into repeat buyers or raving fans who spread the word.
Why Does This Matter for Advertising?
Here’s where most people go wrong with ads: they’re out here trying to skip stages! Oh my!
You may be running awareness ads (top of funnel), but expecting bottom-of-funnel results (sales and conversions). That’s a fast track to wasted budget and burnout.
To avoid this, group your ad strategy into three core levels:
TOFU (Top of Funnel) = Brand Awareness, Reach, Video Views
MOFU (Middle of Funnel) = Optimize for Website Traffic, Lead Gen, Engagement
BOFU (Bottom of Funnel) = Where the money is at! Conversions, Retargeting, Special Offers
When your ad campaigns are aligned with the right funnel stage and the right audience, that’s when the magic happens.
What Happens When You Don’t Use the Funnel?
You’re literally going to be spinning your wheels, throwing money out the window and watching it fly away. Here’s what that looks like:
Low engagement
Misaligned messaging
Wasted ad spend
Little to no ROI
Frustration from seeing no results on “Boosted” posts
So How Do You Use the Funnel for Ad Strategy?
Easy! Let’s walk through it.
Ask Yourself: Where is my audience in the funnel right now? What messaging do I want them to see at each stage?
Have clear goals for each stage (Awareness = reach or conversion = sales). A local brick-and-mortar restaurant should use a Reach campaign first who wants to gain foot traffic, for example.)
Match your message and the copy to the stage of the funnel (for example, an introduction video as a TOFU ad and a Client Testimonial as a BOFU ad)
Use the funnel to determine your budget allocation
How to Apply the Funnel to Your Ads (Simple Version)
Here’s a quick walkthrough to help you understand how to bring strategy into every campaign you build:
Ask yourself: Where is my audience right now in the funnel? What messaging do I want them to see at each stage?
Set clear goals for each stage (Ex: Awareness = Reach, Conversion = Sales)
Match your messaging to the stage (Ex: Intro video for TOFU, Client testimonial for BOFU)
Allocate your ad budget accordingly
A Funnel In Action
Let’s say you’re the owner of a service-based business (like a marriage and life coach) who wants to bring in more clients and a steady income.
Here’s a quick example of your ads running through the funnel:
TOFU: Run an Instagram Reel sharing your story or a relatable relationship moment to capture attention.
MOFU: Offer a free downloadable “fun marriage questions” PDF that gets them on your email list and builds trust.
BOFU: Retarget engaged users with a client testimonial or a powerful video explaining your services and results.
Know the Funnel. Grow Your Business.
When you understand how the sales-marketing funnel works, your ads stop feeling so random—and start driving real, intentional results. You’re not being salesy; you’re being strategic. You're meeting your customers where they are and guiding them every step of the way.
Not sure where to start to build a strong ad strategy using the sales-marketing funnel? Jump on a free Discovery Call session with me so we can evaluate your needs and goals and we’ll get you on your way to creating clarity and results with full advertising management.